Here is the latest in a series of videos where we cover the different types of entities and what they mean for you.

In this weeks video we discuss the partnership. If you have any questions that arise from this video or you would like to discuss anything else please contact us and we would be glad to lend our expertise!

Among the various changes here are some of the key changes you will need to know when it comes time to prepare your 2014 tax return!

Private Health Insurance Rebates

There have been a few changes in the way your private health insurance rebate is calculated, the rebate percentages are now adjusted on April 1st by an adjustment factor meaning you will now have one percentage to claim from 1 July to 31 March and another from 1 April to 30 June.

What this means for you – when it comes time to complete your tax please ensure you have received or downloaded your Annual Tax Statement from the your insurer and bring it with you to your appointment at CATS to enable we are able to complete your return quickly.

Net Medical Expenses Tax Offset

As we may have mentioned to you last year this offset is being phased out over a number of years

What this means for you – If you did not claim and receive this offset in your 2013 tax return you won’t be able to claim it this year unless the expenses relate to disability aids or aged care. If you did claim it last year then you are able to claim it this year so ensure you gather your receipts to bring into CATS. Depending on your earnings you may have to meet a different total expense this year, please contact CATS for more information.

Change of Name

If you have changed your name for any reason during the year (eg for marriage) then you will need to contact the ATO to inform them before you lodge your tax return from the 2014 tax year onwards.

Electronic Refunds

for most refunds the ATO will no longer send cheques out with your notice of assessment. You will need to provide the bank account details of the account that you would like to have the refund deposited into when CATS complete your return. Please bring these along with you to your appointment.

Tax Receipt

The Government have announced that with your notice of assessment you will now receive a ‘Tax Receipt’ that details how your tax paid will be spent in this year’s budget. For an example and for more information please visit to ATO’s website.

Small Business Returns

The Superannuation Guarantee

has increased from 1st July 2014 from 9.25% to 9.5% so ensure that you are paying your employees the correct rate. For information on how to change this in your datafile please contact CATS.

Fuel Tax Credits

As always there are changes to the fuel tax credit rates as at 1st July 2014 please visit the ATO’s website before you complete your next BAS for the most recent rates.

Simplified Depreciation Rules

The government have proposed changes to the simplified depreciation rules for small business in relation to the immediate write off of assets costing less than $6,500 and the accelerated depreciation of motor vehicles. The proposed changes would reduce the immediate write off of low cost assets to $1,000 and would scrap the accelerated depreciation of motor vehicles all together as at 1st January 2014. This would mean that for half of the year you would have different rules than the other. However this has not yet passed through government and is expected to be put back in front of the senate early in the financial year.

What this means for you – Apart from a headache this means that depending on which set of laws you decide to complete your tax return with you may be faced with amending your return later when it is either passed or rejected by the senate. The ATO have been kind enough to ensure that if the change in law results in you having to amend your return you will not be charged interest or penalties for this amendment. Nice of them. For more information please contact our office.

For any other changes or for any questions at all please feel free to contact CATS, we would be glad to lend our expertise!

Are you looking into purchasing a new vehicle for your business and are confused about the different finance options out there?

Its ok! Most people are. That’s why we have made a small summary of the two most common finance types and what they mean for you! Although there are many options these are the two most common finance types we see in your tax returns.

Hire Purchase Lease

In this finance arrangement a finance company agrees to purchase the vehicle on behalf of the customer and then lease it back to them over a period of time. At the end of the lease the customer then pays a residual and takes full ownership of the vehicle.

The advantages of this type of lease are that there are fixed monthly repayments and a fixed interest rate, your costs are known in advance, the finance is secured against the vehicle meaning you may have lower interest rates, a tax deduction is available on the vehicle depreciation and if you are registered for GST you can claim GST on the purchase price of the vehicle and on the term charges over the period of the loan.

Chattel Mortgage

Under this arrangement the financier will advance the customer the money to purchase the vehicle and then will take a mortgage over the vehicle as security for the loan until the loan has been paid off.

Many of the benefits of this method are similar to that of a Hire Purchase Lease however there are some differences. The vehicle is owned by the customer from the time of purchase rather than at the end of the lease period and if you are registered for GST you can claim the GST on the purchase price of the vehicle only and not on the term charges each month. However one advantage is that a business can claim this GST on the purchase price up front in their next BAS rather than over the term of the lease.

For more information on the different options for you please feel free to contact our office and we will be glad to lend our expertise!

The Plug

Did you know , not only can CATS help you with the tax implications of your finance choice, you can also contact CATS to arrange finance for your business vehicle? Through Macquarie Leasing CATS can assist you in making the process easier and ensuring you receive a competitive rate for your next vehicle purchase. For more information please contact our office.

Why Fuss over a Business Name?

What could you say identifies a business more to it’s customers than its name? Have a think about it. Tough one huh..!

Is it Branding? Yes this is integral to business identity! But it goes without saying that if your business name were to change then your brand would certainly alter with it (would the Golden Arches of McDonalds look right if their business name changed to Harolds?).

What about Product Offering/Services? You’re right, these will stick in the minds of your customers and be the reason why they bring their business back to you, time after time. But a service or product isn’t what your customers think about when they realise they need to book a check-up for their car, that they’d like a coffee or that they require your expert hemming services. No – what they’ll be thinking when this need arises is: ‘I should get over to XYZ because I need another widget!’ Your patrons won’t necessarily recall your product or service, but they will remember that ‘Sammy’s Subs’ make the best sandwiches in town.

Could it be the People running the business? We’d all agree that a business is nothing without it’s people! It’s the efforts of owners, managers and staff that engages with customers and ensures repeat purchases. But despite knowing all of this, if we were recommending said business to our friends and family we would still say to them ‘go to <insert business name>! <Friendly staff member> was really helpful and will definitely sort you out!’. We purchase from the business identity not the people within the business who are responsible for it’s character.

There are many, many factors contributing to the perceived character of your business. Without doubt, your business name will be the first thing customers will associate with whatever makes you special. It’s a lot like an ice berg – your business name is the tip of the iceberg that everyone will come to know and recognize. If the tip of the iceberg were to suddenly change, whatever lies beneath the water (the people, products, services of the business) could become irrelevant and insignificant in the mind of the customer.

So what should I do to protect my Business Name?

While registering a business name with ASIC is an important part of setting up and running your business, many people are surprised to learn registration doesn’t provide exclusive ownership of your business name.

Registering a business name is no more than a legal obligation if you plan to carry on business or trade in Australia using a name other than your own.

So, remember that registering a business name doesn’t mean you own it, or that you are preventing other people from being able to register and use similar names.

Usually, the only way to get exclusive use of a particular business name is to register it as a trade mark. You can find more information about what’s involved – and search for existing trade marks at no cost – by visiting IP Australia.

If you’re concerned that your business name isn’t protected, please contact Tim Garth, the author of this article. You’ll find him at his email address – tim@catax.com.au, or just call the CATS office on (02) 4353 5370 and ask for Tim.

Master Building Works Pty Ltd

Having met Warren Garth of CATS Accountants some five years ago, I was pleased to achieve a seamless transition from my retiring accountant to his services to look after my accounting and tax work. He’s got a great team behind him, which is most helpful and friendly. All enquiries are answered quickly and comprehensively. I particularly like the use of the wide screen TV to present my figures.

BNI Franchise Owner

The team at CATS have done it again! Other than your usual friendly and attentive service you now have questionnaires that I can use to prepare my end of financial year information at tax time. Makes things so much easier for me now that I know exactly what you need.

Pharmacist

CATS Accountants assist me with my accounting and taxation matters for both my business and personal affairs. I strongly recommend them to anyone who is seeking professional advice at an elite level. Warren and his friendly, supportive team always respond promptly to my calls, focus on what my needs are and best of all strive to minimise my tax.

Director - Beautique Beauty Therapy

Warren, Kerry and the Team at CATS Accountants have been taking care of us for our bookkeeping, accounting and taxation needs for 9 years now. Thanks to their exceptional service and the monthly reports we always know where we are at with our business. We have always been happy with CATS Accountants and their personal approach and would highly recommend them to other businesses.

Director - AIIB Insurance Brokers

To Warren,

I would like to let you know that we are absolutely happy with the work that has been done for us. The Team are great to work with and it is a pleasure to have CATS as our Accountants. I wouldn’t hesitate to recommend CATS to our business associates.